One the biggest Russian heavy industry enterprises Uralmash-Izhora Group (OMZ) has announced large scale investments in its metallurgical division, which includes OMZ-SpecStal LLC, Liteinoye Proizvodstvo LLC and Pilsen Steel (Czech Republic).
The strategic investment program (which is currently under development) for the company's metallurgical division for the period up to 2010 is to provide for a doubling of sales by approximately $1 billion, and also for technical modernization and implementation of the latest technologies.
OMZ plans to focus on the most competitive types of metallurgical products, which, among others, include casting products made of special high-alloy steels for the mining, energy and shipbuilding industries.
In particular, OMZ plans to invest about $250-280 million in the development of its special steel division and about $80 million in steel casting. The investment will cover the modernization of steel smelting facilities, including the construction of a next-generation DSP-120 heavy-duty electric steelmaking furnace, which will become operational in 2009. In addition, among other upgrades, OMZ will undertake a full re-equipment of the steel smelting facilities at its casting complex, the reconstruction of extra furnace processing units and the replacement of thermal furnaces.